Items addressed in this release
Items addressed in previous release
What's new for ProSeries/Maryland
Forms
Electronic filing
Additional information
The CARES Act of 2020 - For more information on Maryland’s conformity to the CARES Act, see the Tax Alert issued July 24, 2020 at www.marylandtaxes.gov/individual/index.php
Standard Deduction - The tax year 2020 standard deduction was increased to a maximum value of $2,300 for single taxpayers and increases to $4,650 for head of household, a surviving spouse, and taxpayers filing jointly.
Income tax credit on Form 502CR for Endowments Of Maryland Historically Black Colleges And Universities Tax Credit - Taxpayers making donations to a qualified permanent fund held at an eligible institution of higher education (Bowie State University, Coppin State University, Morgan State University or University of Maryland Eastern Shore), may be eligible for a credit of 25% of the amount of donations. Individuals who make an approved donation and certified as eligible for this tax credit may claim the credit on Part L of Form 502CR.
Two New Subtractions:
Subtraction Code uu - Gain recognized as the result of the sale of property for the redevelopment within Laurel Park, Pimlico Race Course, and/or Bowie Race Course Training Center, and for the amount of income recognized directly or indirectly by the state investment in the sites.
Subtraction Code vv - The value of a subsidy for rental expenses received by a resident of Howard County under the 'Live Where You Work' program of the Downtown Columbia Plan.
Other Subtraction Changes:
Increased pension exclusion - Maryland's maximum pension exclusion, which is available to qualifying taxpayers who are age 65 or older; are totally and permanently disabled; or have a spouse who is totally and permanently disabled, increased from $31,100 to $33,100 for tax year 2020.
The Honorable Louis L. Goldstein Volunteer Fire, Rescue and Emergency Medical Services Personnel Subtraction Modification Program (code va) was increased from $5,000 to $6,000 for each taxpayer.
The mileage rate for certain qualifying charitable use of a car on Form 502V has decreased from 58 cents to 57.5 cents.
Local Tax Rate Increases:
See www.marylandtaxes.gov/individual/credits-deductions/local-countytax-rates.php for a complete list.
The Maryland Revenue Administration Division has approved for filing all forms and schedules included in ProSeries/Maryland.
You can file returns electronically with this version of ProSeries/Maryland.
Paid preparers who have prepared 100 or more Maryland individual income tax returns in the prior tax year are required to file all individual income tax returns electronically unless the taxpayer requests paper filing or the preparer has received a waiver from the Comptroller. See the Government Instructions and Tax Help for more information.
PDF Attachments
PDF attachments are supported for electronic filing with Maryland returns. As you create returns for electronic filing, ProSeries will automatically track attachments required to be submitted with the Maryland e-file return. If you would like to attach some or all of these attachments as PDF files you can now access that option for the Maryland return under the e-file menu (either from within the return or on the HomeBase when the return is highlighted). The Electronic PDF attachments section of the Maryland Information Worksheet, Part VII keeps track of required attachments that have been attached as PDF.
For a list of forms that can be e-filed, go to What's New for Maryland.
The Maryland Revenue Administration Division scans computer-generated forms to quickly process the income tax returns it receives. To meet the requirements for producing computer-generated forms, ProSeries is required to limit the width of the tax information printed on forms that are scanned. In certain cases, data you entered may be truncated. After completing a tax return, review the information that prints (for example, mailing address information), make any necessary changes, and reprint the return before mailing it.
When printing your clients' returns for filing, do not scale, fit, or shrink pages. Only print Actual Size. Scaled returns cause Maryland's scanning to fail, requiring manual review and delayed processing.
Some states use bar codes on computer-printed tax forms. This special formatting allows the state taxing authorities to process returns more quickly and efficiently. On-screen, you'll see only a small representation of the bar code on the lower-left side of the form. This image is static and does not change based on the information in the return. However, when you print the return, the bar code appears as a large rectangular box on the first page of the form. The width of the bar code is constant; the height varies according to the data in the return. In general, the more complex the return, the larger the printed bar code.
Important: Because the bar code image is a function of the data in the tax return, it's important that you reprint the page with the bar code if changes are made to any part of the return. Also, do not print blank copies of the main form and prepare them manually. The Maryland taxing authority may attempt to scan the form and reject it.
End of ReadMe file for ProSeries/Maryland